Trade-Ideas: General Electric (GE) Is Today's Unusual Social Activity Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified General Electric ( GE) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified General Electric as such a stock due to the following factors:

  • GE has 11x the normal benchmarked social activity for this time of the day compared to its average of 7.81 mentions/day.
  • GE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $833.5 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on GE:

General Electric Company operates as an infrastructure and financial services company worldwide. The stock currently has a dividend yield of 3.2%. GE has a PE ratio of 17.0. Currently there are 7 analysts that rate General Electric a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for General Electric has been 35.6 million shares per day over the past 30 days. General Electric has a market cap of $242.9 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.25 and a short float of 0.7% with 1.98 days to cover. Shares are up 13.6% year to date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates General Electric as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, increase in stock price during the past year, notable return on equity and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • The gross profit margin for GENERAL ELECTRIC CO is rather high; currently it is at 52.94%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 8.94% is above that of the industry average.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • GENERAL ELECTRIC CO's earnings per share declined by 8.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GENERAL ELECTRIC CO increased its bottom line by earning $1.38 versus $1.24 in the prior year. This year, the market expects an improvement in earnings ($1.66 versus $1.38).
  • GE, with its decline in revenue, slightly underperformed the industry average of 4.2%. Since the same quarter one year prior, revenues slightly dropped by 2.7%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Industrial Conglomerates industry average. The net income increased by 0.9% when compared to the same quarter one year prior, going from $3,105.00 million to $3,133.00 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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